Question
The condensed financial statements for OIL Inc. and ERS Company for the year ended December 31, Year 5, follow: OIL ERS Revenues $ 909,000 $
The condensed financial statements for OIL Inc. and ERS Company for the year ended December 31, Year 5, follow:
OIL | ERS | ||||
Revenues | $ | 909,000 | $ | 306,000 | |
Expenses | 663,000 | 203,000 | |||
Net income | $ | 246,000 | $ | 103,000 | |
Retained earnings, 1/1/Year 5 | $ | 803,000 | $ | 203,000 | |
Net income | 246,000 | 103,000 | |||
Dividends paid | 93,000 | 0 | |||
Retained earnings, 12/31/Year 5 | $ | 956,000 | $ | 306,000 | |
Cash | $ | 83,000 | $ | 113,000 | |
Receivables and inventory | 403,000 | 173,000 | |||
Patented technology (net) | 903,000 | 304,500 | |||
Equipment (net) | 703,000 | 603,000 | |||
Total assets | $ | 2,092,000 | $ | 1,193,500 | |
Liabilities | $ | 603,000 | $ | 414,500 | |
Common shares | 533,000 | 473,000 | |||
Retained earnings | 956,000 | 306,000 | |||
Total liabilities and equities | $ | 2,092,000 | $ | 1,193,500 | |
On December 31, Year 5, after the above figures were prepared, OIL issued $228,000 in debt and 15,000 new shares to the owners of ERS for 90% of the outstanding shares of that company. OIL shares had a fair value of $40 per share.
OIL also paid $33,000 to a broker for arranging the transaction. In addition, OIL paid $35,000 in stock issuance costs. ERSs equipment was actually worth $696,000, but its patented technology was appraised at only $283,000.
Required:
What are the consolidated balances for the year ended/at December 31, Year 5, for the following accounts? (Omit $ sign in your response.)
(a) Net income
OIL's net income considered in the Consolidated Financial Statement $
(b) Retained earnings, 1/1/Year 5
OIL's retained earnings in the Financial statement for Consolidation $
(c) Equipment
Value of equipment after acquisition $
(d) Patented technology
Value of patent after acquisition $
(e) Goodwill
Goodwill $
(f) Liabilities
Total liabilitiesafter acquisition $
(g) Common shares
Total value of common shares after acquisition $
(h) Non-controlling interests
Total value of non-controlling interestafter acquisition $
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